Volume 8, Issue 3 e70193
RESEARCH ARTICLE

Sustainability in SMEs: The Role of Female Leadership, Organizational Ambidexterity, and Decent Work

Pedro Mota Veiga

Pedro Mota Veiga

University of Maia, Maia, Portugal

NECE-UBI Research Center for Business Sciences, Covilhã, Portugal

LIACC – Artificial Intelligence and Computer Science Laboratory, Porto, Portugal

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Susana Alves Pereira

Corresponding Author

Susana Alves Pereira

University of Maia, Maia, Portugal

NECE-UBI Research Center for Business Sciences, Covilhã, Portugal

Correspondence:

Susana Alves Pereira ([email protected])

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Rui Azevedo

Rui Azevedo

University of Maia, Maia, Portugal

NECE-UBI Research Center for Business Sciences, Covilhã, Portugal

Centre ALGORITMI, University of Minho, School of Engineering, Guimarães, Portugal

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Maria Manuel Sá

Maria Manuel Sá

University of Maia, Maia, Portugal

NECE-UBI Research Center for Business Sciences, Covilhã, Portugal

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First published: 31 July 2025

Funding: This work was supported by Fundação para a Ciência e a Tecnologia, UIDB/04630/2020.

ABSTRACT

This study investigates how female leadership influences environmental sustainability practices, organizational ambidexterity, and decent work within small and medium-sized enterprises (SMEs) in the European Union. Drawing on the resource-based view, dynamic capabilities, and stakeholder theory, the study explores both the direct and indirect pathways through which female leadership fosters sustainability-oriented organizational conditions. Using microdata from 7560 SMEs across 16 EU countries, collected through the 2019 World Bank Enterprise Survey, the analysis applies partial least squares structural equation modeling (PLS-SEM) to test the relationships among key constructs. The results demonstrate that female leadership positively affects environmental sustainability outcomes, both directly and through its impact on ambidextrous capabilities and decent work practices. These findings highlight the strategic role of gender-diverse leadership in enabling SMEs to align internal resources with sustainability objectives. The study extends current literature by integrating established constructs into a unified empirical model and offers practical insights for policymakers and managers seeking to embed sustainability into core SME strategies.

Conflicts of Interest

The authors declare no conflicts of interest.

Data Availability Statement

The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to privacy or ethical restrictions.

The full text of this article hosted at iucr.org is unavailable due to technical difficulties.